I'm trying to implement the percent rules (2%, 70%, and 50%) but not even coming close with the property values.

Hey guys,I was about to send these 2 wireframes (made into a slideshow to demonstrate how it works) to a programmer to have it developed into a web tool - basically it scans the zip code for current listings by $/sq ft and shows the lowest price per sq ft as "deals":https://www.slideshare.net/secret/4o378v4Enp7MiaI thought it might be helpful to share this concept and see if anyone else would be interested in using such a tool.What do you guys think?

If his income fluctuates (which is pretty common for most of the self employed folks I know) or the building implements special assessments (most do at some point), your friend could really find himself in an even tougher spot.I'm sure his 3mm apartment is pretty nice, but it's really costing him too much based on his current income.

So, learn about that first - and a good point to start is a Nolo Every-Landlords-Property-Protection-Guide book (https://www.amazon.com/Every-Landlords-Property-Protection-Guide/dp/1413307000/)  it will explain about insurance, how to evaluate insurance, and then about property management, property code, proper leasing and all the way to LLC and hiring.But sooner or later, once the equity in the properties passes your risk threshold, you'll have to implement additional asset protection (LLC).

BTW, I don't advocate actually implementing the above paragraph.

I have tenants complaining that the previous owner said "no pets" but the people upstairs have pets etc....Here's what I have implemented considering all tenants are under the previous owner's lease. 

I have over 10 years of experience making mistakes, developing solutions, and implementing preventative measures to ensure these risks are minimized.The more experience I gain, the more I see that one of the most essential components of real estate investing is risk management, but also property management, people management, market research, investment analysis are also essential (not in order of priority).Some specifics:My tenants (customers) are new families with 1-3 children. 

Thank you guys so much, I'll make sure to implement those tips!!

The rest should be pretty easy to document procedures and train.Next comes the issue of implementation.

The purpose of this post is to gather as many viewpoints as I can regarding 2 possible strategies that I am considering implementing in my initial REI strategy.